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Proof of Loan (PoL)

Proof of Loan is our on-platform cashback mechanism that mints $8LENDS to users who provide liquidity to a lending pool. It’s designed to reward early and ongoing participation while aligning token supply with demand.

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How It Works

  1. Deposit Funds: You fund a lending pool (see 8 Steps on 8lends).

  2. Pending Cashback: Until the stage closes, PoL rewards are “frozen” and can only be spent on subordination-priority upgrades (see Priority).

  3. Stage Outcome

    • If the stage succeeds: PoL tokens unlock and can be used anywhere on-platform (fees, upgrades, other pools) or claimed on-chain;

    • If the stage fails: All pending PoL rewards are burned, and your deposit is refunded fee-free.

chevron-rightCashback Calculation (Advanced Users)hashtag

For a user , the PoL reward in $8LENDS is computed as:

For a their affiliate, the PoL reward in $8LENDS is computed as:

  • S: amount you deposited (in USDC).

  • LLC: Loan Cashback Coefficient, a percentage of S set per pool.

  • P_mint: current mint price of one $8LENDS in bonding curve contract (see “P_mint”).

  • C = share of the cashback awarded to the user; (1−C) goes to an affiliate or back to the platform if no referral applies.

As more $8lends are minted, P_mint​ rises, so later rewards (in tokens) shrink in line with the bonding curve supply model.

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